I agree with bindictive. Hostels are a great way to meet people, not to mention a great way to save on accommodation. I would also check out http://www.hostelworld.net and sites like it. This site lets you pre-book hostels, view pictures and read reviews of past sleepers. It's always a good idea to read up on the reputation of a particular hostel to help you avoid dodgy areas, bedbug issues, and other issues related to security and cleanliness.